SeeThruEquity Initiates Coverage on LongFin Corp. with a Price Target of $8.42.

NEW YORK, NY / ACCESSWIRE / September 7, 2017 / SeeThruEquity, a leading
independent equity research and corporate access firm focused on
small-cap and micro-cap public companies, today announced it has
initiated coverage on LongFin Corp., with a 12-month price target of US
$8.42.

We initiate coverage on LongFin Corp. (Nasdaq pending, "LFIN") with a
price target of $8.42. LongFin is a non-banking Fintech company
providing structured commodity trade finance (shadow banking) solutions.
The company also provides market making (FX, FX derivatives,
commodities) and liquidity to global exchanges, banks, and trading
houses, via its proprietary electronic platform powered by artificial
intelligence and machine learning. Regular research and development of
new electronic market making (EMM) products (such as TradeFlow platform)
and geographical expansion via banking channels and new fortune 500
global trade companies bodes well for the company. LongFin aims to
connect 70 FX and spot exchanges and more than 300 banks across the
globe via its platform. The company's EMM trading platform is highly
reliable, scalable and can integrate directly with exchanges and other
liquidity providers. The size of shadow banking industry stood at ~$34
trillion in 2015 and is expected to grow further as global trade
financing gap continues to increase. We see LongFin as a speculative
play on a multi-trillion-dollar shadow banking industry with a
proprietary electronic platform and an experienced management team. The
company is witnessing rapid growth with revenues which are expected to
reach ~$2.4 billion by 2022. The EBITDA margins are likely to remain in
the range of 6-6.5% for a majority of the forecast period.

Proprietary EMM Technology Powered by AI/Machine Learning
LongFin's proprietary electronic market making (EMM) platform offers
ultra-low latency, wide connectivity and is powered by artificial
intelligence and machine learning algorithms which provide the most
efficient order management and execution. The platform can perform over
2500 transactions per second with less than 3-4 ms of execution latency.
It is co-located with exchanges and provides directs streaming from
banks.

EMM is a part of Automation of Knowledge Work which is ranked second to
Mobile Internet by McKinsey report out of 12 disruptive technologies.
The company's EMM trading platform is highly reliable, scalable and can
integrate directly with exchanges and other liquidity providers. LongFin
aims to connect 70 FX and spot exchanges and more than 300 banks across
the globe via its platform.

Multi-Trillion Dollar Global Trade Finance Market
Global Trade Flows are continuously increasing across geographies, thus
creating a large gap between trade flows and financing facilities. The
global market for trade finance was estimated at $6.5-$8 trillion in
2014 according to the Bank for International Settlements. As of 2015,
the global trade finance gap which reflects the inability of financial
institutions to provide trade finance is estimated at around $1.6
trillion. About $692 billion of this is in Asia (including India and
China). This provides a large opportunity for non-bank intermediaries
such as LongFin to cater to the shortfall.

Rise of Non-Bank Liquidity Providers
The non-bank liquidity and technology solutions providers, specifically
in the FX market, has seen tremendous growth post the financial crisis.
In 2015, non-bank liquidity providers handled 20% of the overall global
FX trade, up from 16% in 2014. This number is likely to move in the
range of 30-35% in the coming years. FX markets are perfectly suited for
non-bank liquidity providers, particularly principal trading firms as
they are standard, liquid, electronic, and boast daily turnover in
trillions of dollars. The global spot FX size is $5 trillion / day and
global trade hedging is more than $60 trillion. Over the past few years,
there has been a shift in the mix of client execution towards multi
dealer platforms (MDPs) such as LongFin. Since 2008, flow handled by
MDPs has jumped 32%, while phone-traded volume is down 50%. The company
handled ~$17.5 billion in FX transactions during 2016-17.

Carry Trade Financing is provided by placing deposits in emerging
market currencies with high-yields and discounted in low-yield
currencies of developed markets. LongFin also provides financing for
Option Volatility based Commodity Trades between offshore and onshore
NDF Markets.

Our Carry Trade Financing is executed through commodity Structured Trade Flows. We place deposits in High-yield emerging money markets and
secure the lending risk through trade finance instruments. The
instruments are discounted in low-yield interest rate developed
countries

What we do in Structured Trade Finance
We work with leading global companies specialized in the world of
global trade in Commodities, Agri Commodities, Metals and Precious
Metals.
We combine the power of ART (Alternative Risk Transfer) to convert
the country risk and asset risk into a performance risk for A or AA
asset classes.

We also Syndicate and Distribute the Bank Risk, Buyers Risk,
Suppliers Risk and FX Risk through various Structured Instruments.
Global Trade Flows are continuously increasing across the
geographies thus creating the huge gap between trade flows and financing
facilities.

LongFin has big opportunity to package and play as Non-Banking
Intermediary by way of transferring Bank Risk, Country Risk, Buyers
Risk, Forex Risk, Cross Currency Risk, Interest Rate Risk, Trading Risk
using own proprietary global connectivity on low-latency networks
connected through multiple exchanges.